CALTRANS PROJECT MANAGEMENT HANDBOOK

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C

ALTRANS

P

ROJECT

M

ANAGEMENT

H

ANDBOOK

Fifth Edition

October, 2007

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ii Caltrans Project Management Handbook Caltrans Office of Project Management Process Improvement

1120 N Street, Mail Station 28 Sacramento, CA 95814

www.dot.ca.gov/hq/projmgmt

Caltrans Project Management Handbook October, 2007

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P r e f a c e

Preface

The Caltrans Project Management Handbook provides an updated overview of project management at Caltrans.

This version is effective as of October 1, 2007.

The project team thanks all individuals within the districts and

headquarters for their support and contributions to the production of this handbook.

Purpose The Caltrans Project Management Handbook provides an overview of the

basic concepts that guide project management at Caltrans.

Audience Caltrans project managers, program managers, stakeholders, and other

staff requiring project management knowledge.

Background This edition is reorganization, clarification, and completion of the

information in the Fourth Edition, revision 1, dated September 19, 2002. Only a small amount of policy and subject matter has changed. The goal of this edition is to make the present policy and subject matter more useful and easier to understand.

This document supersedes all previous editions of the Caltrans Project

Management Handbook and the Project Management Terms and Definitions

contained in any Project Management Directive

References are to the Project Management Institute (PMI) Third Edition of the Guide to Project Management Body of Knowledge (PMBOK)

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C

ONTENTS

Preface ...iii Purpose...iii Audience...iii Background...iii Revisions ...iii Conventions...iii Figures ... viii Basic Concepts...9 What Is a Project? ... 10

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C o n t e n t s

vi Caltrans Project Management Handbook

PID Deliverables...19

Permits and Environmental Studies Component ...20

Permits and Environmental Studies Deliverables ...20

Plans, Specifications, and Estimate (PS&E) Component...21

PS&E Deliverables...21

Right of Way Component...22

Right of Way Deliverables ...22

Construction Component ...23 Construction Deliverables...23 Project Processes ...25 Processes Overview...26 Process Groups...26 Initiating Processes ...28 Planning Processes...28 Executing Processes ...29

Monitoring and Controlling Processes ...32

Closing Processes ...32

Knowledge Areas ...33

Project Integration Management ...34

Project Scope Management ...34

Project Time Management...35

Project Cost Management...35

Project Quality Management ...36

Project Human Resource Management ...36

Project Communications Management...37

Project Risk Management...37

Project Procurement Management ...38

People ...39

Roles...40

Stakeholders ...40

Project Team...41

Project Development Team...43

Responsibilities...45

Concepts ...45

Responsibility Matrix...46

Functional Deputy District Directors and Deputy Division Chiefs in the Division of Engineering Services...50

Project Management Support Unit (PMSU)...50

Consultant Services Unit ...50

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C o n t e n t s

One-Hat Project Managers ... 51

Two-Hat Project Managers ... 52

Training & Skills ... 53

Tools ...55

Project Management Plan... 56

Project Charter ... 57

Workplan ... 58

Work Breakdown Structure ... 58

Resource Breakdown Structure... 58

Organizational Breakdown Structure... 58

Value Analysis & Value Metrics ... 59

Information Systems... 61

California Transportation Improvement Program System (CTIPS) ... 61

Project Resource and Schedule Management (PRSM) ... 62

Transportation Accounting and Management System (TRAMS)... 63

Staff Central ... 63

Project Management Data Warehouse (PMDW) ... 63

Systems Being Replaced ... 63

Glossary ...65

Definitions... 66

Acronyms ... 71

References ... 73

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C o n t e n t s

viii Caltrans Project Management Handbook

Figures

Figure 1. Knowledge and skill sets needed for effective state highway project management...15

Figure 2. Components in the project lifecycle...18

Figure 3. Process group interaction ...27

Figure 4. Project Team & PDT...43

Figure 5. Organizational structure: one-hat project manager...51

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1

B

ASIC

C

ONCEPTS

This chapter:

Defines what “project,” “project management,” “program management,” mean at Caltrans

Explains the purpose and goals of project management at Caltrans Provides a “big picture” view of project management as one of the

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W h a t I s a P r o j e c t ? B a s i c C o n c e p t s

10 Caltrans Project Management Handbook

What Is a Project?

A Guide to the Project Management Body of Knowledge (PMBOK® Guide)1

defines a project as “…a temporary endeavor undertaken to create a unique product, service, or result.” A Caltrans capital outlay project produces a unique physical improvement to the transportation system in California. “Project” refers to the work that is performed to develop a transportation improvement product. Projects produce products. A project is temporary because it has a definite beginning and a definite end. The outcome is unique because it differs in some distinguishing way from all similar products or services. For example, Caltrans may be engaged in many highway maintenance projects, but each project is unique because it involves a unique location and work elements on a specific section of highway.

A Caltrans capital outlay project is initiated during the project initiation document phase (PID) by opening an Expenditure Authorization (EA), assigning a project manager, and deciding to begin the project. A Caltrans capital outlay project ends when all close-out activities have been achieved and the EA is closed.

Caltrans divides each project into “components,” each of which produces a major product required by law. Collectively, these components constitute the “project lifecycle.” For more information on the Caltrans project lifecycle, see “Project Lifecycle” on page 17.

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B a s i c C o n c e p t s W h a t I s P r o j e c t M a n a g e m e n t ?

What Is Project Management?

The PMBOK® Guide defines project management as “…the application of knowledge, skills, tools, and techniques to project activities in order to meet project requirements.” Project management balances competing demands (scope, time, cost, quality, requirements, expectation of various stakeholders, etc.) throughout the project lifecycle and involves the interaction of three elements:

People — People perform the work and determine the success or failure of a project (see “People” section on page 39).

Processes — Processes specify products or deliverables required for the project and identify who will perform the work and when (see “Project Processes” section on page 25).

Tools — People use predefined tools and techniques to manage the project (see “Tools” section on page 55).

Why Do We Do It? Limited available resources (compared to transportation needs) require the

efficient use of tax dollars. Project management helps Caltrans maintain efficiency by helping to ensure that the right resources complete the right tasks at the right time.

Project

Management Mission

Caltrans delivers transportation improvements that meet customer needs. Caltrans project teams use project management standards to deliver quality projects that are timely and cost-effective. The purpose of project management is to:

Improve project delivery performance related to quality, scope, schedule, and cost

Reduce the support cost of producing the project Do the right things the first time

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W h a t I s P r o j e c t M a n a g e m e n t ? B a s i c C o n c e p t s

Transportation Planning, Administration and Equipment Services. Laws and regulations establish programs for government projects. These laws and regulations define each program’s purpose, funding sources, and funding process. In California State government, resources for programs must be approved by the legislature in the annual budget.

Project Management vs. Program Management

This handbook describes the management of a single project; it does not cover program management. The following table summarizes the differences.

Project Management Program Management

The direction and supervision of one

project The integration, coordination, communication, and simultaneous control of multiple projects A discipline An operating environment Project-wide (a tactical issue) Enterprise-wide (a strategic issue)

For the fiscal year 2007-2008, the following programs fund state highway improvement projects:

Program Authority

State Transportation Improvement (STIP) and Interregional Improvement Program (IIP)

Government code 14529 (a) (1) and (2)

State Highway Operation and Protection Program (SHOPP)

Government code 14526.5

Phase 2 Seismic Retrofit Program Government code 8879

Toll Bridge Seismic Retrofit Program Streets & Highway Code 188.5 Toll Bridge Improvements Program Streets & Highways code 30950 Transportation Enhancement Activities

(SHOPP TEA) – Caltrans Share California Transportation Commission (CTC) Resolution 00-18 (This is a federal program with matching funds from the SHOPP)

Transportation Enhancement Activities

(STIP TEA) – Caltrans Share California Transportation Commission (CTC) STIP Guidelines (This is a federal program with matching funds from the STIP)

Special Retrofit Soundwalls Items 0042 and 2660-302-0890 of the 2000 Budget Act (Chapter 52, Statutes of 2000)

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B a s i c C o n c e p t s W h a t I s P r o j e c t M a n a g e m e n t ?

Program Authority

Regional Measure 1 Streets and Highways code 30913 Regional Measure 2 Streets and Highways code 30914 Highway Safety, Traffic Reduction, Air

Quality and Port Security Bond Act Government Code 8879.20 Traffic Congestion Relief Program (TCRP) Government Code 14556 State Highway Projects Funded from

Other Sources

Annual State Budget

Funds for every state highway project come from one or more of these programs. Project managers must know which programs are funding their projects, and understand the particular funding rules of those programs. Some other tips for successful project management with respect to funding:

A project manager must also understand and analyze funding cycles for the various fund sources affecting his/her project.

A project manager must make sure that a project conforms to the Regional Transportation Plan.

A project manager must understand what is meant by “financially constrained” with respect to his/her project.

A project manager must determine if his/her project has full funding and understand the importance of it.

A project manager must understand the importance or need for local match where necessary.

Ensure project is consistent with FTIP, if federal funds are involved. The “State Highway Projects Funded from Other Sources” program covers any project funded from sources other than the first 10 programs. Other sources include developer fees, local state tax, and federal demonstration funds. Caltrans performs limited work on these projects. The Legislature provides an annual budget for support of this work.

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W h a t I s P r o j e c t M a n a g e m e n t ? B a s i c C o n c e p t s

Task

Management

Task Management is defined as the assignment of individuals (Task Managers) to manage the production and completion of a discrete deliverable, or work package, on a project within a defined schedule and budget.

Task Managers on all Capital Projects are assigned, at a minimum, for all Work Breakdown Structure (WBS) Level 4 and WBS Level 5 work

packages. Assigning Task Managers for lower level WBS work packages is encouraged.

For more information on Task Management, see Deputy Directive DD-93 dated August, 2007.

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B a s i c C o n c e p t s T h e B i g P i c t u r e

The Big Picture

Figure 1. Knowledge and skill sets needed for effective state highway project management

For projects to be successful, the project team must understand and apply generally accepted project management techniques such as work

breakdown structures, critical path analysis, and earned value. While they are necessary, these techniques alone are not sufficient for effective project management. Effective management of California state highway projects requires that the project team understand and use the following knowledge and skill sets:

Project management knowledge and practices — these consist of project lifecycle definition, five project management process groups, and nine project management knowledge areas. All of these are summarized in the remainder of this handbook and described in the

PMBOK Guide. Project management body of knowledge State highway knowledge standards & regulations Interpersonal skills General management knowledge and practices Understanding the project

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T h e B i g P i c t u r e B a s i c C o n c e p t s

Understanding of the project environment— the project team must understand the project in its social, biological, and physical

environment. The team must understand how the project affects people and how people affect the project. This may require an understanding of aspects of the political, economic, demographic, educational, ethical, ethnic, religious, and other characteristics of the people who will be affected by the project or who have an interest in the project. Some team members must be familiar with applicable federal, state, and local laws and with the relevant portions of the budgets of the entities that are funding the project. Other team members must be knowledgeable about the flora, fauna, geology, and physical geography of the region around the project.

General management knowledge and practices — these are needed for the management of any enterprise. They include strategic planning, health and safety practices, marketing and sales, financial management and accounting, and personnel administration. Interpersonal skills — these are often called “soft skills,” including

the management of relationships with others and the management of oneself. Soft skills include communication, teamwork, leadership, conflict management, negotiation, problem solving, motivation, delegation, personal time management, and stress management. Every person can improve his/her soft skills through training and practice.

It is not necessary for every team member to possess all these knowledge and skill sets. In fact, it is unlikely that any one person will have all of the knowledge and skill necessary for project success. Some aspects of these knowledge and skill sets might not be needed on a particular project, but they should be available “on call” within Caltrans or through consultants. For more information on training see

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IFECYCLE

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L i f e c y c l e O v e r v i e w P r o j e c t L i f e c y c l e

Lifecycle Overview

Caltrans divides each project into project components, each with its own outcomes, or “deliverables.” The Caltrans Guide to Capital Project Delivery Work Plan Standards, formerly known as Work Breakdown Structure (WBS), described on page 58, defines the deliverables for each component. Together, the project components make up the project lifecycle.

For information on phase numbers and WBS elements associated with each process, see Chapter 3 Project Processes.

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P r o j e c t L i f e c y c l e P r o j e c t I n i t i a t i o n D o c u m e n t C o m p o n e n t ( P I D )

Project Initiation Document Component (PID)

Caltrans capital projects start with a transportation problem that needs to be solved. Before a project starts, the Planning Division or the Maintenance and Operations Division or the local agency generates a list of potential projects, each with a “purpose and need” statement. Any work on the project, throughout the project’s lifecycle, must relate back to the original purpose and need statement.

PID Deliverables The main deliverables for the Project Initiation Document (PID)

component are:

The PID — contains a defined project scope, a reliable capital and support cost estimate for each alternative solution, and a project workplan for the alternative recommended for programming the project.

For some projects the PID is combined with the PA&ED, and the Environmental Document/Determination is completed at the PID phase rather than during the PA&ED phase.

Project Charter for the PID phase.

The Project Management Plan: This is a group of files used to define how the project is to be executed, monitored, and controlled. Included are the Project Charter, the Project WorkPlan, the Project Communication Plan and the Risk Management Plan.

The Financial Management Plan: Required by the Federal Highway Administration (FHWA) for certain federally funded projects.

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P e r m i t s a n d E n v i r o n m e n t a l S t u d i e s C o m p o n e n t P r o j e c t L i f e c y c l e

Permits and Environmental Studies Component

For a capital project to proceed, it must receive official federal, state, and environmental approvals as well as consensus from all the stakeholders and the public. This component is also known as the Project Approval and Environmental Document (PA&ED) phase of the project.

Permits and Environmental Studies

Deliverables

The main deliverables for the Permits and Environmental Studies component are:

Notice of Intent (NOI). Under NEPA, for EIS projects, the NOI is published in the Federal Register FHQA.

Notice of Preparation (NOP). Under CEQA, for EIR projects, the NOP is filed with the State Clearinghouse.

Draft Environmental Document (DED)/or Environmental Determination (categorical exemption/categorical exclusion. CE/CE). This includes either the approval to circulate the DED or the CE/CE determinations.

Final Environmental Document — contains all required

environmental approvals. Many environmental compliance, permit, and agreement requirements are obtained during the PS&E phase.

For more information, see the Caltrans Standard Environmental Reference.

Draft Project Report. The Draft Project Report (DPR) is a decision document. It is only used when there is a Draft Environmental Document (DED). The purpose of the DPR is to document the need for a transportation project, to summarize key points from the Draft Environmental Document, and to summarize the studies of the scope, cost, and overall impact of alternatives so that the decision maker can make an informed decision on whether or not to proceed to the public hearing phase of project development.

Project Report — further refines the purpose and need, identifies the alternative selected, describes how that alternative was decided upon, and describes how consensus was reached between Caltrans and stakeholders. For more information, see the Caltrans Project

Development Procedures Manual.

During this phase, expanded engineering studies are completed to support the environmental evaluation and stakeholder input to the project and its alternatives.

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P r o j e c t L i f e c y c l e P l a n s , S p e c i f i c a t i o n s , a n d E s t i m a t e ( P S & E ) C o m p o n e n t

Plans, Specifications, and Estimate (PS&E)

Component

This component includes all work to develop contract plans, specifications, engineer's estimate, contract bid documents, allocation of funds, contract award, and contract approval. In addition, environmental commitments must be resolved.

PS&E Deliverables The Plans, Specifications, and Estimate (PS&E) deliverables include the followings:

Prepare base maps, plan sheets.

Obtain permits, agreements, and route adoptions. Prepare draft PS&E.

Mitigate environmental impacts and clean-up hazardous waste. Prepare draft structures PS&E package.

Circulate, review, and prepare final District PS&E package. Prepare contract bid documents “Ready to List”.

Award and approve construction contract.

If any environmental permits are required for the project they must be obtained from the appropriate resource and/or regulatory agencies prior to the completion of PS&E. Any environmental commitments from the environmental document, environmental permit(s), or any other applicable environmental requirements must be fully incorporated into the PS&E package.

When the PS&E package is complete, the project should be biddable and buildable.

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R i g h t o f W a y C o m p o n e n t P r o j e c t L i f e c y c l e

Right of Way Component

Caltrans is required to obtain property rights for the construction of many of its transportation projects. The Right of Way Component involves preparing maps and legal documents, preparing appraisals, obtaining legal and physical possession of property, relocating occupants, clearing all physical obstructions, and relocating utilities. Other required activities include managing properties, selling excess properties, monumentation of the Right of Way, relinquishments and vacations, and preparing right of way record maps.

Right of Way Deliverables

The main deliverables for the Right of Way Component are:

The Right of Way Certification — summarizes the status of all right of way matters pertaining to a proposed construction project. The Right of Way Certification is included in the PS&E package.

Legal Right of Way — secures all real property rights that are required for the project, and relocates occupants according to federal and state laws, regulations, and procedures.

Clearance of physical obstructions from the right of way — removes improvements, relocates utilities, and executes all railroad

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P r o j e c t L i f e c y c l e C o n s t r u c t i o n C o m p o n e n t

Construction Component

After the construction contract for a Caltrans capital project has been awarded, construction can begin.

Construction Deliverables

The main deliverables for the Construction Component are:

The constructed physical improvement — follows the guidelines in the current edition of the Construction Manual.

The Final Estimate — includes the final quantity and cost of the work for which the contractor has been paid.

The As-Built Plans — reflects what was actually built, including any plan changes made during construction.

The Project History File — follows the guidelines in Section 3 of Chapter 15 of the Project Development Procedures Manual. Certificate of Environmental Compliance.

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3

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ROJECT

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ROCESSES

This chapter explains how the PMBOK® Guide process groups and knowledge areas apply to project management at Caltrans

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P r o c e s s e s O v e r v i e w P r o j e c t P r o c e s s e s

Processes Overview

Each component involves a series of processes from five “process groups.” The PMBOK® Guide defines a process as “a set of interrelated actions and activities performed to achieve a specified set of products, results, or services.” Project processes fall into one of two categories:

Project management processes — describe and organize the work of a project. For example, during the PID component (page 18), the project manager distributes information to and from stakeholders, defines the scope of the project, and facilitates decision-making. Product-oriented processes — specify and create the product. These

processes are summarized in the “executing processes” section of this chapter (on page 29). More detailed descriptions are provided in the

Guide to Project Delivery Workplan Standards and in the manuals,

guides, and handbooks that are referenced in the Guide to Project

Delivery Workplan Standards.

Process Groups Caltrans divides project management activities into five generally

accepted process groups, matching those in the PMBOK® Guide: Initiating Processes (page 28)

Planning Processes (page 28) Executing Processes (page 29)

Monitoring and Controlling Processes (page 32) Closing Processes (page 32)

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P r o j e c t P r o c e s s e s P r o c e s s e s O v e r v i e w Assign Project Manager Assign Project Manager Communication Plan Communication Plan Quality Plan Quality Plan Draft Workplan Draft Workplan Consultant Procurement Consultant Procurement Risk Identification, Analysis & Planning

Risk Identification, Analysis & Planning

Workload Leveling Workload Leveling Programming Programming Current Workplan Current Workplan Perform Work Perform Work Information Distribution Information Distribution Status Status Reporting Reporting

Project Change Process

Performance Evaluation

Performance Evaluation _{Close Out}_{Close Out}

Planning

Controlling

Closing

Monitoring

Initiating

ID NeedID Need

Project Charter Project Charter Significant Change No Change Approved Change (New Baseline)

Iterative Process Baseline Workplan Baseline Workplan Final Draft Workplan Final Draft Workplan

Executing

Risk Monitoring & Control Risk Monitoring & Control Quality Assurance Quality Assurance Stakeholder Analysis Stakeholder Analysis Quality Control Quality Control Contract Performance Contract Performance Assemble Project Development Team Assemble Project Development Team Establish Expenditure Authorization Establish Expenditure Authorization

WBS 100

WBS

100 WBS

150-300

Figure 3. Process group interaction

These process groups:

Link to each other by the results they produce — the outcome of one process group usually becomes an input to another.

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For example, the plan for the Permits and Environmental Studies phase component is a product of the PID

component.

For more information on lifecycle components, see “Project Lifecycle” on page 17.

Initiating Processes

Initiating processes involve recognizing that a component should begin and authorizing the project manager to proceed. All initiating processes are project management processes. At Caltrans, this process group involves the following processes:

Initiating processes for the PID component: Identify a need

Assign a project manager

Establish an expenditure authorization (EA) Assemble a project development team (PDT) Develop a project charter

Initiate Cooperative Agreements

Initiating processes for all other components:

Establish EAs — Open next phase EA - a support phase EA for each component and separate capital EAs for the Right of Way and Construction components. See PDPM Chapter 8.

Update the project charter

Planning Processes

Planning processes involve devising and maintaining a workable plan to achieve the desired result of the component. All planning processes are project management processes. At Caltrans, this process group involves the following processes:

Planning processes for the PID component:

Core processes Create a PID workplan (PID WBS, Resource Breakdown Structure (RBS) assignments, cost, and schedule)

Perform stakeholder analysis

Develop scope of work for a Cooperative Agreement

Financial Management Plan as required by FHWA for certain projects

Facilitating processes

Create a PID Quality Management Plan Create a PID Communication Plan Create a PID Risk Management Plan

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P r o j e c t P r o c e s s e s P r o c e s s e s O v e r v i e w

Planning processes for all other components:

Core processes Draft a workplan for all items that are to be programmed (WBS, RBS assignments, and initial schedule)

Update the stakeholder analysis

Finalize the draft workplan for programming (WBS, RBS assignments, cost, and schedule)

Complete project programming

Create a baseline workplan (adjust final draft workplan to match the outcome of programming)

Develop scope of work for a Cooperative Agreement

Facilitating processes

Create a Project Quality Management Plan Create a Project Communication Plan Create a Project Risk Management Plan Manage consultant procurement Perform workload leveling

Executing Processes

Executing processes involve coordinating people and other resources to carry out the project plan. Executing includes both project management processes and product-oriented processes. At Caltrans, this process group involves the following processes:

Project management executing processes for all components: Collect project information for use by the project team Distribute project information to the project team Maintain project files

Ensure proper hand-off of project deliverables from one team member to another

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Phase Component WBS Process

100.05 Project Management- PID Component K PID

150 Develop Project Initiation Document (PID)

100.10 Project Management- PA&ED Component 0 Permits and

Environmental

Studies 160 Perform the Preliminary Engineering Studies and Prepare Draft Project Report

165 Perform the Environmental Studies and Prepare Draft Environmental Document (DED)

175 Circulate the Draft Environmental Document and Select Preferred Project Alternative Identification 180 Prepare and Approve Project Report and Final

Environmental Document

205 Obtain Permits, Agreements, and Route Adoptions

100.15 Project Management- PS&E Component 1 PS&E

185 Prepare Base Maps and Plan Sheets 230 Prepare Draft PS&E

235 Mitigate Environmental Impacts and Clean-up Hazardous Waste

240 Prepare Draft Structures PS&E

250 Prepare Final Structures PS&E Package

255 Circulate, Review, and Prepare Final District PS&E Package

260 Contract Bid Documents “Ready to List”

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P r o j e c t P r o c e s s e s P r o c e s s e s O v e r v i e w

Phase Component WBS Process

100.25 Project Management- Right of Way Component 2&9 Right of Way

195 Right of Way Property Management and Excess Land

200 Utility Relocation

220 Perform Right of Way Engineering

225 Obtain Right of Way Interests for Project Right of Way Certification

245 Post Right of Way Certification Work

300 Perform Final Right of Way Engineering Activities

100.20 Project Management- Construction Component

270 Perform Construction Engineering and General Contract Administration

285 Contract Change Order Administration

290 Resolve Contract Claims 3&4 Construction

295 Accept Contract, Prepare Final Construction Estimate, and Prepare Final Report

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Monitoring and Controlling Processes

Monitoring and Controlling processes measure progress to ensure that project objectives are being met. If necessary, the project manager may have to take corrective actions to get the project back on track. All

controlling processes are project management processes. At Caltrans, this process group involves the following processes:

For all components: Assure quality

Report milestone status

Monitor project performance (percent complete and earned value).

Visit: http://pd.dot.ca.gov/pm/pmweb/overview.asp slide 21 for

information on performance report and earned value.

Report performance to management and project sponsors (District Status meetings, RTPA Quarterly Reports, HQ Delivery Plan meetings)

Prepare Programming Change Requests Monitor and control risk

Closing Processes Closing processes formalize the conclusion of the project or component,

bringing it to an orderly end. This process group involves the core processes of contract closeout and administrative closure. All closing processes are project management processes. At Caltrans, this process group involves the following processes:

For all components:

Close out cooperative agreements Close out consultant contracts Record lessons learned

Archive project records Suspend EAs

Complete final accounting for the component Excess lands

For the complete list of close out processes, see the HQ/PM/Closeout Tool website:

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P r o j e c t P r o c e s s e s K n o w l e d g e A r e a s

Knowledge Areas

Caltrans project managers use various tools (reference documents, templates, computer applications, etc.) and techniques (skills, defined methods, procedures, etc.) to perform the tasks in each process group. The

PMBOK® Guide divides these tools and techniques into nine knowledge

areas:

Project Integration Management (page 35) Project Scope Management (page 34) Project Time Management (page 35) Project Cost Management (page 35) Project Quality Management (page 36)

Project Human Resource Management (page 36) Project Communications Management (page 37) Project Risk Management (page 37)

Project Procurement Management (page 38)

For example, the project manager uses project scope management knowledge to complete processes within the following process groups: initiating, planning, executing, and controlling. For more information on process groups, see “Process Groups” on page 28.

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K n o w l e d g e A r e a s P r o j e c t P r o c e s s e s

Project Integration Management

Project integration management tools and techniques ensure the proper coordination of the various elements of the project.

Caltrans project managers use the following project integration management techniques:

PDTs, formed at the beginning of the project lifecycle

Each team’s level of involvement varies according to the current project component

Roles and responsibilities determined by the PDT

The basic purpose and need statement in the project charter and PID At the start of each component, and when introducing new team members, the project team refers back to the purpose and need statement to ensure that they are still working towards the stated goal Multi-year project workplans and work agreements to guide the

execution and control of project work and resources

Project management directives that define department-wide standards

Flexibility in processes to recognize district or project-specific needs

Project Scope Management

Project scope management tools and techniques ensure that the project includes all the work required, and only the work required, to complete the project successfully.

Caltrans project development teams select elements from a standard WBS to produce a project-specific WBS. This project WBS organizes and defines the total scope of the project. Any work not included in the project WBS is outside the scope of the project.2

The scope is defined as, “the sum of the products, services, and results to be provided by a project.”3_{Within Caltrans capital outlay delivery, the scope}

product commonly refers to the capital outlay scope portion of the project. However, in broader terms, the scope also includes the support work required to produce the product.

2_{PMBOK® Guide – 2004 Third Edition, Section 5.3.3.1, pages 117-118} 3_{PMBOK® Guide – 2004 Third Edition, Glossary, page 375}

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Project Time Management

Project time management tools and techniques ensure timely completion of the project.

Caltrans project managers use project time management techniques to produce resource-loaded critical path schedules. Work on the critical path should always be fully resourced, using a combination of Caltrans staff, brokering, overtime, consultants, and contractors. Non-critical work elements with the least float (flexibility of schedule) are completed first and are scheduled in such a way as to minimize workload fluctuations. Caltrans maintains standard templates for use as starting points in developing critical path schedules.

Project Cost Management

Project cost management tools and techniques ensure that the project team completes the project within the approved budget.

Caltrans project managers use project cost management techniques such as the Program Evaluation and Review Technique (PERT) to develop budgets. Using PERT, Caltrans can be assured, within statistical limits that the actual expenditures will be within the amounts allowed by State law.4_Effective

use of PERT requires that the project manager regularly compare actual expenditures to planned expenditures at the level used in budget development.

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Project Quality Management

Project quality management tools and techniques ensure that the project will satisfy the objectives for which it was undertaken.

Caltrans project managers, project sponsors, and PDTs prepare a project charter at the start of the PID component. They review and amend this charter at the start of each succeeding component. The charter is the starting point for the development of the project-specific WBS.

Caltrans project managers also use earned value analysis to monitor and control project support cost.

The Project Quality Management Plan (QMP) is a component of the project management plan. It describes the team’s plan for quality control, quality assurance, and independent quality assurance. It includes plans to ensure that the product will meet the expectations of the external customers and that the deliverables will meet the needs of the internal customers.

Project Managers, Functional Managers, and others who are responsible for Quality Assurance (QA) regularly evaluate project performance, Quality Control (QC) Plans and activities, and specific WBS deliverables to provide confidence that each deliverable and the end-product of the project will meet customer requirements. QA is part of the controlling process group. Each WBS deliverable is assigned to a Task Manager. Under the direction of his/her Functional Manager, the Task Manager prepares a Quality Control (QC) Plan for that deliverable that documents the customer requirements, the procedures and the review processes that will ensure the deliverable meets customer expectations.

Project Human Resource

Management

Project human resource management tools and techniques ensure the most effective use of the project team. They ensure that people with the needed skills are available at the right time to execute the product-oriented processes.

Caltrans project managers use a standard Organizational Breakdown Structure (OBS) and various project resource management techniques to produce a project-specific OBS. Similarly, they use cost center and various project resource management techniques to produce a project-specific cost center.

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Project

Communications Management

Project communications management tools and techniques ensure the timely and appropriate generation, collection, dissemination, storage, and ultimate disposition of project information.

Caltrans project managers use project communications management techniques to:

Develop a communication plan for the project

Distribute information via the methods that reach customers most effectively

File data using the Uniform Filing system

Archive records in accordance with the Caltrans Records Retention policies

The Caltrans Project Communication Handbook contains detailed information on communications management processes.

Project Risk Management

Project risk management tools and techniques are used to identify, analyze, and respond to project risk.

Caltrans project managers use project risk management techniques to produce a risk management plan for the project and to manage the plan as risks and opportunities arise.

The Caltrans Risk Management Handbook contains detailed information on project risk management processes.

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Project

Procurement Management

Project procurement management tools and techniques are used to acquire goods and services from outside Caltrans.

The principal types of procurement on state highway projects are the: Procurement of architectural, engineering, and other consulting

services to supplement Caltrans staff in project delivery

Relocation of utilities, through contracts with utility companies Purchase of real property

Procurement of construction services through contracts with construction companies

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4

P

EOPLE

People perform the work and determine the success or failure of a project. This chapter discusses the organizational structure, roles, and

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R o l e s P e o p l e

Roles

The people involved in a Caltrans project fill a variety of roles, each important to the project’s success.

Stakeholders A stakeholder is anyone who has a vested interest in the project.

Stakeholders are individuals and organizations who are actively involved in the project, or whose interest may be positively or negatively affected as a result of project execution or successful project completion.

Stakeholders often have conflicting objectives, needs, and expectations. Finding appropriate resolutions can be one of the major challenges of project management. The project team must identify the stakeholders on a project, determine what their needs and expectations are, and then

manage and influence those expectations to ensure a successful project. In general, differences between or among stakeholders should be resolved in favor of the customer. Understanding the customer is the key to

determining the true requirements of a project.

Stakeholder identification is difficult, but necessary. Naming or grouping stakeholders is primarily an aid to identify which individuals and

organizations can facilitate or hinder the delivery of a project. For more information, see the Caltrans Project Communication Handbook.

Customers

Customers for any Caltrans capital project are either internal or external to the project.

External Project Customers — transportation system users who pay for projects through fuel taxes, vehicle fees, tolls, bonds, sales taxes, fares, and other charges (in other words, the general public or their elected representatives)

Internal Project Customers — individuals who will use the

deliverables or information produced at various stages of the project (internal to the project, not necessarily to Caltrans)

Sponsors

Project sponsors are individuals or groups that represent external project customers by advocating a project or group of projects. They may be internal or external to Caltrans. Types of sponsors include:

Deputy District Directors for Transportation Planning and District Division Chiefs for Transportation Planning — the internal sponsors of interregional improvement projects

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P e o p l e R o l e s

Deputy District Directors for Maintenance and Operations and District Division Chiefs for Maintenance and Operations — the internal sponsors of SHOPP projects

Regional transportation planning agencies, county transportation commissions, cities, and counties — the external sponsors of regional projects

Sponsoring local entities

The external sponsors of locally funded projects such as: Sales tax authorities, counties, cities, etc.)

Regulatory Agencies

Regulatory agencies can facilitate the delivery of a project by providing permits and other documents of approval. Examples include the California Department of Fish and Game, the Environmental Protection Agency (EPA), and other governmental agencies.

For more information, see the current editions of the Caltrans Standard

Environmental Reference and the Caltrans Construction Manual.

Oversight Agencies

The primary role of the Federal Highway Administration (FHWA) is to oversee any proposed highway project on the interstate system. The FHWA plays a specific role in State Highway Projects such as technical input during the planning, environmental, design, and construction phases. The FHWA also provides partnering input and emergency relief.

Opposition Stakeholders

Opposition stakeholders are stakeholders who feel that their interests will be harmed by the project. Examples could include local governments, homeowner associations, environmental advocacy groups, landowners,

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Caltrans uses interdisciplinary teams that initiate, plan, execute, control, and close the various components of the project lifecycle to ensure the successful delivery of a project. Project success hinges on effectively meeting stakeholder needs or communicating why their needs cannot be met.

The project team may be formally or informally organized, depending on the complexity of the project. Individual team members may be active or inactive as a project progresses through the project lifecycle. The project team typically performs the following activities:

Ensure design of a quality project that can be safely and efficiently constructed and maintained within scope and budget and on schedule.

Participate in a reevaluation of preliminary engineering data and system planning recommendations to confirm that the study should continue.

Determine logical project limits.

Determine the need for participation of local, regional, State or Federal agency members, or the need for advisory committees. Recommend studies, timetables, alternatives, type of environmental

document, and the feasibility of mitigation measures.

Call upon various disciplines as needed to ensure thorough analysis of the social, economic, environmental and engineering aspects of the project.

Initiate community involvement to obtain project consent and help plan public meetings and hearings.

Ensure that State and Federal requirements are met.

Recommend a preferred alternative to district management. Ensure that right of way is acquired and cleared on schedule. Provide advice during construction.

Ensure that the project history is preserved.

Ensure that post construction mitigation is completed before project close out.

Ensure that excess property efforts are completed before project close out.

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P e o p l e R o l e s

Project

Development Team

A PDT is an interdisciplinary team composed of key members of the project team and selected external stakeholders. (See figure 4.)

PDT members:

Advise and assist the project manager in directing the course of studies

Make recommendations to the project manager and district management

Responsible to carry out the project workplan

Participate in major meetings, public hearings, and community involvement

Oversee the execution of the early components of the project activities, culminating in project approval

The PDT continues to address significant project issues that may arise during any component of the project lifecycle. For further discussion of the PDT, see the Caltrans Project Development Procedures Manual, Chapter 8, section 4.

Project Team

Project Development Team (PDT)

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Work on access controlled facilities requiring a new or revised Freeway Agreement

Substantial increase in capacity

During the early components of a project, the PDT formally solicits project stakeholder input into the planning, development, and evaluation of the various project alternatives. This is primarily due to the fact that on a PDT, external stakeholders are given an active role in solving their problems.

Informal Approach to Stakeholders

On smaller projects that do not meet the criteria listed above, the PDT uses an informal approach to obtain stakeholder input. Generally this means that the stakeholders are less actively involved, but still consulted.

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P e o p l e R e s p o n s i b i l i t i e s

Responsibilities

Every member of a project team has a different set of responsibilities. This section details these responsibilities.

Concepts These concepts of responsibility, empowerment, and authority apply to

every member of the project team.

Responsibility

Responsibility is the commitment to accomplish the work with the quality promised within an agreed upon schedule and within an agreed upon budget of dollars or hours. Each member of the project team is accountable for meeting his/her commitments.

Empowerment

Project complexity combined with customer demand for responsiveness requires management to empower the project team to meet customer needs. Empowerment does not mean that managers abdicate their leadership role. Rather, it means that managers need to define the boundaries for, or delegate a level of authority to, each project team member in accordance with that individual’s capabilities.

Project team members are then free to:

Carry out their assignments using their own judgment, skills, and methods

Make unilateral decisions affecting how they do work Accept responsibility for the outcome of their efforts

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R e s p o n s i b i l i t i e s P e o p l e

Overlapping Responsibilities

Any project has the potential for overlapping responsibilities. Prior to the initiation of the project or a particular project component, the project team must agree on who will assume what responsibilities.

Responsibility Matrix

The following table outlines the tasks assigned to each role. See “Stakeholders” on page 40 for role definitions.

Role Process

Group Action

Project

Sponsor Initiate Identifies and prioritizes projects for which he/she is the sponsor Sets goals for the project and works toward agreement on the charter

Serves as advocate for his/her projects and solicits funding from the various funding programs (STIP, SHOPP, Minor, Congestion Mitigation and Air Quality (CMAQ), Toll, Sales Tax, etc.)

Arranges funding for projects — for external sponsors, this includes working with the CTC to arrange funding for STIP projects

Establishes performance measures for evaluating the quality of capital improvements Deputy District Director for Program and Project Management (DDDPPM) Has overall responsibility for the management of the capital program in a district or region

Initiate Manages delivery of the district’s portfolio of state highway projects

Ensures that his/her district meets the programmed project delivery performance measures

Identifies delivery trends and takes corrective action to improve delivery Works with RTPAs concerning changes to externally sponsored projects Manages capital outlay support resources

Makes decisions on how to apply resources, staff, overtime, and consultants Maintains staff/supervisor/manager ratios

Manages his/her district’s project management plan

Makes decisions on which projects to implement, tools to use in managing projects, and business processes to implement for effective project management

Works with other managers to establish priorities and manage production of project delivery

Ensures that business processes and procedures are in place to meet delivery objectives

Directs project managers, the project management support unit (PMSU), and the consultant services unit (for more information about these units, see “Project

Management Support Unit” on page 50, and “Consultant Services Unit” on page 50) Assigns workload and resources to project managers

Provides project managers with training and direction in the use of resources Sets priorities between competing resource demands

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P e o p l e R e s p o n s i b i l i t i e s

Role Process

Initiate Identifies the needs and expectations of the project sponsors

Plan Leads the project team in the development of a project management plan that defines the project scope, schedule, cost, resource needs, risk, and communication needs

Ensures that the project management plan includes all the work required, and only the work required, to produce the product

Assigns resources in the following order:

First, assigns WBS elements to functional managers in his/her own district or region

Second, brokers WBS elements to functional managers in other districts, regions or divisions, if functional managers in his/her own district or region are unable to meet the delivery requirements

Third, uses consultants to produce work elements, if neither local district or region staff nor brokering will meet the delivery requirements

Modifies workplans to account for the use of project-specific consultant contracts Monitor &

Control Coordinates and facilitates the work performed throughout the project lifecycle Monitors project performance and takes corrective action if necessary

Communicates sensitive issues and project progress to district management, the sponsors, and the project team

Provides input into the performance evaluation of project team members, and recommends changes to the project team membership when necessary

Serves as the single point of contact on matters involving overall project scope, cost, or schedule

Resolves problems that affect project scope, cost, or schedule

Controls change to the project scope, cost, or schedule throughout the project lifecycle

Coordinates communication between task managers and internal customers of project deliverables to verify and document customer expectations

Coordinates the efforts of the overall team, including the Division of Engineering Services Project Manager Has full authority, delegated from the DDDPPM, to produce the intended results, on schedule and within budget, and to keep the project sponsors and customers satisfied

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Role Process

Plan Prepares and reviews project resource estimates Assigns an equitable workload to individual employees

Assigns project team members when requested by the project manager or task manager by:

Determining his/her functional unit’s ability to meet project delivery schedules using in-house staff

Using “on-call” consultant resources, including oversights, when his/her functional unit is unable to meet its delivery commitments with in-house staff Using flexible resources such as other Districts, Regions, and State agency staff Modifies workplans to account for the use of “on call” consultant contracts Execute Directs project team members in the delivery of products within the timeframe

agreed in the project management plan Supervises a functional unit

Acts as the immediate supervisor of the staff who work on the project Provides opportunities for staff members to strengthen their skills

Empowers staff to do their jobs with the minimum supervision necessary according to each individual’s capabilities

Provides technical and procedural direction to staff performing the work Approves staff and other project expenditures

Ensures that there are adequate quality control and quality assurance processes in place for deliverables

Provides quality assurance on contract and cooperative agreement work Monitor &

Control Monitors and provides feedback to staff Functional

Manager

Close Ensures that intermediate products (including reports, estimates, environmental documents, etc.) meet the needs of internal customers and have the required features to comply with all applicable standards, regulations, and policies Task Manager Assumes both project manager and functional manager responsibilities for the production of particular WBS elements; may have a title such as “Project

Plan Is appointed by the functional manager (if the WBS elements are produced entirely by one functional unit) or by the lowest-level supervisor or manager who manages all the involved functional units (if the WBS elements are shared among several functional units)

Participates in the development of the project management plan

Provides expert knowledge and analysis for the preparation of the project scope, schedule, and resource estimates

Commits to the scope, schedule, and resource estimates of his/her portion of the project management plan

Commits to delivery of his/her portion of the project workplan

Identifies and verifies customer expectations and prepares a Quality Control Plan for each deliverable in his/her portion of the project scope

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P e o p l e R e s p o n s i b i l i t i e s Role Process Group Action Engineer, “Project Coordinator”, etc.

Execute Leads project team members in the delivery of products within the timeframe agreed in the project management plan

Provides activity status information to the project manager (e.g. start date, remaining duration, finish date, percent complete, and hours at completion)

Coordinates with other functional areas on planned products

Communicates sensitive project problems, issues, conflicts, or changes to the project manager and the functional manager

Resolves technical problems, issues, or conflicts raised by staff so that the overall project scope, cost, schedule, and product quality are not compromised

Provides feedback to staff, functional managers, and the project manager on lessons learned

Provides early identification to the project manager of issues that might impact the budget or scheduled delivery

Provides products on time and within budget

Executes the Quality Control Plan to ensure deliverables will meets customer expectations.

Monitor &

Control Coordinates the work of several functional units Performs full-time task management duties

Takes responsibility for WBS elements that are shared among several functional units Monitors project performance and cost, and takes corrective action if necessary Provides input into the performance evaluation of project team members and recommend changes to the project team membership when necessary Coordinates the efforts of the members of the project team

Assists the project manager to resolve problems that affect project scope, cost, or schedule Functional Coordinator Appointed by a Functional Deputy District Director or by a Deputy Division Chief in the Division of Engineering Services

Close Provides feedback to the project manager on lessons learned

Plan Provides input into the development of the project management plan

Execute Delivers products within the timeframe agreed upon in the project management plan Project Team

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Functional Deputy District Directors and Deputy Division Chiefs in the Division of Engineering Services

Functional Deputy District Directors (FDDD) and Deputy Division Chiefs (DDC) in the Division of Engineering Services are responsible for entire functional areas in a district, region, or division.

They:

Manage functional managers

Report directly to District Directors, Chief Deputy District Directors, or the Chief of the Division of Engineering Services

Facilitate interaction between project managers and functional managers

Provide functional managers with training and direction in the use of resources

Project

Management Support Unit (PMSU)

PMSUs, located in each of the districts or regions, provide administrative support to project managers — collecting data, preparing reports on project status, maintaining project management, databases, etc. While PMSUs support multiple projects at one time, Caltrans recommends a one-on-one relationship with PMSU staff — a project manager should contact the same PMSU staff person throughout the project lifecycle.

Consultant Services Unit

Consultant services units, located in each of the districts or regions,

manage the procurement of outside resources necessary to deliver projects. The consultant services unit develops the scope of services or deliverables for each contract using the statement of work and other input provided by the project manager, project workplan, and other functional units that are involved in the project.

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P e o p l e O n e - H a t a n d T w o - H a t P r o j e c t M a n a g e r s

One-Hat and Two-Hat Project Managers

Caltrans categorizes its project managers as either “one-hat” or “two-hat.”

One-Hat Project Managers

A one-hat project manager’s duties consist mainly of project management and could in special cases include supervision. One-hat project managers determine what tasks are done, when they are done, and how much each task costs. One-hat project managers are generally assigned to all major capital projects, including the following:

STIP, SHOPP, seismic, locally funded, and toll projects Projects with multiple functional unit involvement

Projects with a significant amount of local or private entity involvement

Current Caltrans policy guidelines require that most project managers be one-hat.

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O n e - H a t a n d T w o - H a t P r o j e c t M a n a g e r s P e o p l e

Two-Hat Project Managers

Two-hat project managers are those whose duties consist of both project management and supervision of a functional unit. Two-hat project managers may be assigned to projects where project requirements do not significantly compromise the functional requirements of the two-hat manager, or create a conflict of interest between the two roles of the project manager.

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P e o p l e T r a i n i n g & S k i l l s

Training & Skills

Project Management Professional (PMP)

The Project Management Institute's (PMI) PMP certification is widely recognized and accepted throughout the world as evidence of a proven level of education, knowledge and experience in project management. The Division of Project Management encourages qualified Project Delivery staff to pursue their PMP and provides a course that includes intensive on-line review and the PMP exam.

Those that have been granted the PMP credential must demonstrate ongoing professional commitment to the field of project management by satisfying PMI's Continuing Certification Requirements. PMP's must accrue 60 Professional development units (PDUs) every three years. For

more information see PMI’s websit.weww.pmi.org

Caltrans Project Management Certificate Program

Delivered in partnership with California State University Sacramento, College of Continuing Education (CSUS, CCE) this program connects industry standard (Project Management Institute) project management principles with Caltrans Project Delivery policies and procedures. This program is targeted at Project Delivery staff at the senior level and above. Project Delivery team members gain the necessary skills to enhance their effectiveness. The program includes both a theoretical and practical problem solving approach to project management.

There are a total of eight courses, with 6 of those on-line and 2 in a traditional classroom setting. In 2006 this program won international recognition by winning the PMI Professional Development Product, and Provider of the Year. Additionally, the program received a Caltrans Innovation Award in 2003 and was the subject of an article published in PM Network magazine in July of 2004. This program is offered internally (Caltrans employees) as the CT PMCP and the website for information is: www.cce.csus.edu/caltrans/pm. To register for courses please go to Caltrans Learning Management System (LMS) within Staff Central. The exact same program is offered to externals through CSUS, CCE. Information

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T r a i n i n g & S k i l l s P e o p l e

Project Manager Skills Series

This 5-course series was developed specifically for Caltrans Project Delivery Project Managers at the request of the Project Management Board. The series includes traditional classroom courses in communication,

negotiation, presentation, facilitation and leadership. These practice based courses will provide the opportunity for improvement to every student, regardless of their current ability level. The Project Manager Skills Series is open to all Project Delivery staff at the senior level and above, Project Management Professionals (PMP) and Assistant Project Managers as identified by their Deputy Director of Program/Project Management

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5

T

OOLS

This chapter describes some of the tools and information systems used by Caltrans project managers